The effects of entrepreneurial orientation dimensions on performance in the tourism sector

Nicoletta Fadda

doi:10.1108/neje-03-2018-0004

Abstract

PurposeThe purpose of this paper is to examine the influence of entrepreneurial orientation (EO) dimensions on firm performance in the tourism sector. The goal is twofold: on the one hand, the paper aims to test whether EO dimensions are still significant determinants of performance after controlling for possible confounding factors; on the other hand, it aims to address the question of which EO dimension exerts the strongest effect on performance.Design/methodology/approachA survey was carried out in the Sardinian accommodation sector in 2012 and 224 questionnaires were collected. The multidimensional EO constructs were adopted.FindingsThe results show that innovativeness, proactiveness and autonomy were significantly associated with tourism firm performance, whereas risk-taking and competitiveness were not.Research limitations/implicationsThe results are limited to the Sardinian accommodation context. Self-reported data were used to measure firm performance. Further research works could replicate the analyses using objective firm performance not only in similar touristic destinations but also in other countries and incorporating other industries.Practical implicationsThe study suggests educational and managerial implications. Entrepreneurs in the tourism sector should be encouraged to adopt an innovative, autonomous and proactive approach in managing their firms.Originality/valueThe study advances entrepreneurial knowledge in the tourism sector and in particular in the accommodation industry. The multidimensional EO approach has never been adopted among touristic firms. Furthermore, considering that EO research has been overlooked in the country of Italy, this study’s contribution is also providing evidence from an area that has received minimal attention to date.

Highlights

Tourism encompasses many different services, facilities and attractions (Leiper, 1979; Smith, 1988) that create a lot of entrepreneurial opportunities
Conclusion and further research The aim of this research was to study the impact of each entrepreneurial orientation (EO) dimension on tourism firm performance
As noted by Miller (2011), single EO dimensions may be practiced to different extents within firms depending on the type of company and the sector in which they operate

Summary

Introduction

Tourism encompasses many different services, facilities and attractions (Leiper, 1979; Smith, 1988) that create a lot of entrepreneurial opportunities. In many countries and regions, the tourism industry is considered to be one of the largest industries when it comes to wealth production and job creation. In 2016, tourist demand grew for the seventh consecutive year reaching 1,235 million international tourist arrivals with the strongest increasing recorded in Africa, Asia and Pacific regions. The growth in tourism obviously influenced the increase in the demand in touristic services (World Tourism Organization, 2017). Tourism is considered an appealing industry capable of attracting many entrepreneurs. Often, these “improvised entrepreneurs” enter into the market without sector-specific

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Conclusion